How to Post Accruals Quarterly instead of Monthly/Annually?
I am writing this blog to share a scenario that came across me when I was implementing a time off project for one of the customers who were in Insurance domain, and I found that it is a common requirement in Asia for insurance industries where they post the prorated accruals every quarter instead of monthly or Annually
Customer Requirement?
The Requirement was straight forward that customer would like to populate accruals every quarter instead of monthly /weekly or annually and they would like to prorate them based on the hire date of the employees.
Total Entitlement for the employee in a financial year for Vacation time type were 12 Holidays
However, Accruals should be posted like this in employee’s account
1 April:3 Days
1 July: 3 Days
1 October: 3 Days
1 January: 3 Days
Obviously, the accrual proration is based on the hire date of the employees, let’s say someone joined on May then they will get 2 instead of 3 days for that quarter likewise anyone joining in June will be entitled for only 1 day for that quarter depending on date of hire for that employee. Moreover for existing employees the posting remains same as described above
PS: I am not discussing the pro-ration in this blog because it is easily achievable via business rule, and there are multiple blogs for that.
Limitation
As you might be aware that in SuccessFactors accrual posting frequency is only limited to weekly/Biweekly/Monthly/Twice monthly/Annually/Once Once/Daly.
There is no option where Accrual Frequency is Quarterly in SuccessFactors in fact there is one Knowledge base article by SAP saying that it is not possible to post accruals quarterly (KBA: 2621990)
However, I was able to build one workaround for this scenario so sharing this solution with the community.
Solution:
Since Sap does not provide the accrual frequency as Quarterly so we created an accrual rule that will make sure that the posting will only happen on specific months in a year
I did set the accrual frequency period as Monthly however because of the hire and accrual rule the accruals were only generated quarterly (April, July, October, and January).
System will still post as 0 on months other than mentioned above, because posting period is monthly.
Here is a screenshot of how posting would work: -
Screenshots of the Accrual Rule –
This will make sure that Accruals are posted on each quarter and on specific months in each year.
The reason behind writing this blog is because as per SAP KBA 2621990 it is a limitation , however this is easily possible with some workaround and tweaks in your business rule.
I hope the blog has been informative and it helps customers/Consultants in their projects.
Regards
Ashish Tyagi
I am writing this blog to share a scenario that came across me when I was implementing a time off project for one of the customers who were in Insurance domain, and I found that it is a common requirement in Asia for insurance industries where they post the prorated accruals every quarter instead of monthly or Annually
Customer Requirement?
The Requirement was straight forward that customer would like to populate accruals every quarter instead of monthly /weekly or annually and they would like to prorate them based on the hire date of the employees.
Total Entitlement for the employee in a financial year for Vacation time type were 12 Holidays
However, Accruals should be posted like this in employee’s account
1 April:3 Days
1 July: 3 Days
1 October: 3 Days
1 January: 3 Days
Obviously, the accrual proration is based on the hire date of the employees, let’s say someone joined on May then they will get 2 instead of 3 days for that quarter likewise anyone joining in June will be entitled for only 1 day for that quarter depending on date of hire for that employee. Moreover for existing employees the posting remains same as described above
PS: I am not discussing the pro-ration in this blog because it is easily achievable via business rule, and there are multiple blogs for that.
Limitation
As you might be aware that in SuccessFactors accrual posting frequency is only limited to weekly/Biweekly/Monthly/Twice monthly/Annually/Once Once/Daly.
There is no option where Accrual Frequency is Quarterly in SuccessFactors in fact there is one Knowledge base article by SAP saying that it is not possible to post accruals quarterly (KBA: 2621990)
However, I was able to build one workaround for this scenario so sharing this solution with the community.
Solution:
Since Sap does not provide the accrual frequency as Quarterly so we created an accrual rule that will make sure that the posting will only happen on specific months in a year
I did set the accrual frequency period as Monthly however because of the hire and accrual rule the accruals were only generated quarterly (April, July, October, and January).
System will still post as 0 on months other than mentioned above, because posting period is monthly.
Here is a screenshot of how posting would work: -
Screenshots of the Accrual Rule –
This will make sure that Accruals are posted on each quarter and on specific months in each year.
The reason behind writing this blog is because as per SAP KBA 2621990 it is a limitation , however this is easily possible with some workaround and tweaks in your business rule.
I hope the blog has been informative and it helps customers/Consultants in their projects.
Regards
Ashish Tyagi
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